WAL-MART AND BHARTI SEAL DEAL…
Bharti Enterprises and Wal-Mart have sealed the deal, according to India Business, on a 50-50 joint venture Wal-Mart will manage the back end while Bharti gets to be the front man for the Bentonvile Behemoth. Bharti did not reveal how much money is involved.
However, the Indian retail market is estimated to be about $300 billion.
While foreign retailers are not allowed to open stores in India that stock more than one brand, Wal-Mart, with $315 billion in revenues, will manage procurement, inventories and logistics.
The Indian partner will set up stores under a franchise arrangement, Bharti joint MD Rajan Mittal said. Bharti said it will open several hundred stores starting next year but the details, including the size of investment and branding, are still to be finalised.
“It is going to be a large investment. We are going to be a big player in the market,” said Bharti chief Sunil Mittal, adding that he wanted the first store to start selling products from August.
Bharti is floating a new company for the retail venture. “The joint venture… will operate in areas where the government allows foreign investment in retail, like cash-and-carry and logistics,” Mittal said.
There are approximately 6.6 souls on the planet at the moment. Of those, 1.3 billion live in China (Wal-Mart, check) and 1.1 billion live in India (Wal-Mart, check). That means that Wal-Mart has access now to more than 37 percent (counting just China and India) of the people in the world.
[...] WAL-MART AND BHARTI SEAL DEAL… Bharti Enterprises and Wal-Mart have sealed the deal, according to India Business, on a 50-50 joint venture Wal-Mart will manage the back end while Bharti gets to be the front man for the Bentonvile Behemoth. Bharti did not reveal how much money is involved. Keep reading… [...]
[...] A week ago I posted about Wal-Mart’s back-end deal with India’s Bharti. At the time I wondered what the numbers were going be. This morning the Associated Press has a figure we can chew on $2.5 billion. I think that number is strangely low. Why? [...]
Is bharti appointing any dealers for the retail outlets in towns or they will only operate own